Interest for Neteller? Is it a possibility - Page 3

Bulbarainey · #21 06-10-2005, 01:59 AM

anyone know if you can link neteller directly to an ING Orange account? that would get at least some interest

Phlebas · #22 06-10-2005, 05:55 AM

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I thought Neteller was Canadian. What the hell is all this talk about the UK?

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Neteller is based in the Isle of Man which sits in the Irish Sea between England and Northern Ireland. Technically it isn't part of the UK although it is a British dependency. Neteller is listed on the London Stock Exchange. It is regulated by the UK's Financial Services Authority. Hence the UK talk [img]/images/graemlins/smile.gif[/img]

Not sure where you got the idea it was Canadian from.

PrayingMantis · #23 06-10-2005, 06:10 AM

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Not sure where you got the idea it was Canadian from.

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When you withdraw using a cheque, it's a National Bank of Canada's cheque.

Phlebas · #24 06-10-2005, 07:37 AM

Ah, not done that so wasn't aware. I see from their investor relations page that they've also got offices in Canada which probably handles all their North American business.

sfer · #25 06-10-2005, 11:08 AM

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They are essentially a broker between buyer and seller, skimming a %age off the top of a transaction. I don't think a standing balance does anything for them. They would need to get a profit from the money they held in order to pay interest which might turn them into a different type of legal entity. Then again, I have no idea how UK banking laws work, so that is all speculation.

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You have a lot to learn about cash management for businesses.

archmagi · #26 06-10-2005, 11:13 AM

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I'm not aware of any UK law that would prevent them from paying interest to UK (and other EU) citizens

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You're wrong.
Neteller services the E.U. customers through their UK operation, and they are subject to UK regulations.
According to those regulations they are not legally allowed to pay interest.
The case might be different in other parts of the world.

Phlebas · #27 06-11-2005, 06:05 AM

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I'm not aware of any UK law that would prevent them from paying interest to UK (and other EU) citizens

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You're wrong.

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Being pedantic, I wasn't wrong. I said I wasn't aware of any such law and it was 100% true that I wasn't [img]/images/graemlins/wink.gif[/img]

Anway, I have looked into this further and it does appear to be the case that under the EU e-money directive that e-money providers cannot pay interest. The reasons I could find don't seem exactly consistent and prohibiting interest payments possibly discourages competition since it makes it harder for competing companies to differentiate their services to consumers. A working party was supposed to be reporting on the issue by April this year - but I couldn't find the outcome of their deliberations.

btw, if you have direct links to the EU documents and/or UK legislation that covers this area I would appreciate if you could provide them.

xniNja · #28 06-11-2005, 06:22 AM

As far as I know, Apathy is correct. Since Neteller is not a bank, it cannot offer interest on money held in private transaction accounts.

Emperor · #29 06-11-2005, 06:32 AM

If it isn't a bank, then is it considered a brokerage account?

Could they give us Return on Investments that are made with funds they hold? Like a Brokerage Account?

xniNja · #30 06-11-2005, 06:37 AM

I would lean towards no. It could theoretically be possible in the distant future if they set up an entire plan, specifically for that goal. However, generally money market funds (mmf) involve mostly static funds. Since neteller's business is in moving the money (transfers,transactions) I don't think it's really in a position to make that offer.